Qualities of an Effective Leader

Leadership is seen to be the ability to influence others. The following are the qualities that a leader must possess to be
an effective one:
1. Integrity – being honest, law-abiding and trustworthy. Adherence to both a code of personal ethics and code of
professional ethics.
2. Courage – taking some risks. To be able to speak w/ the colleagues about some problems observed
3. Attitude - a good attitude goes long way in making a good leader.
4. Initiative – good ideas are not enough. To be a leader, you must act on those
t hose good ideas.
5. Energy - leadership are hard but satisfying endeavors effort. It is also important that the energy be used wisely.
6. Optimism – it is important not to let discouragement keep you and yourcoworkers from seeking ways to resolve
the problems.
7. Perseverance - Effective leaders do not give up easily. Instead, they persist, continuing their efforts w hen others
are tempted to stop trying.
tr ying. This persistence often pays off.
8. Balance - In the effort to become the best nurses they can be, people may forget that other aspects of life are
equally important. Balance between work and play is needed.
9. Ability to handle stress - Coping with stress in as positive and healthy a manner as possible helps to c onserve
energy and can be a model for others.
10. Self-awareness - People who do not understand themselves are limited in their ability to understand the
motivations of others. They are far more likely to fool themselves than are self-aware people.
11. Able to set priorities – Whether planning care for a g roup of clients or setting the strate gic plan or an
organization, priorities continually shift and demand attention. As a leader you will need to remember the three
“E’s” of prioritization: evaluate, elim inate, and estimate. Continually evaluate what you need to do, e liminate
tasks that someone else can do, and estimate how long your top priorities will take you to complete.
12. Critical thinker - Critical thinking is the careful, deliberate use of reasoned analysis to re ach a decision about
what to believe or what to do
13. Problem solver - Client problems, paperwork problems, staff problems: these and others occur frequently and
need to be solved. The effective le ader helps people to identify problems and to work through the problem-
solving process to find a reasonable solution.
14. Respectful to an individual - Although people have much in common, each individual has different wants and
needs and has had different life experiences. The effective leader recognizes these differences in people and
helps them find the rewards in their work that mean the most to them.
15. Skillful communicator  – able to listen to others, encourages exchange of information, and provides feedbacks.

Qualities of an Effective Manager

The effective nurse manager possesses combination of qualities. None of these alone is enough; it is the combination
that prepares an individual for the complex task of m anaging a unit or team of health-care providers.

1. Good Leadership - All of the people skills of the leader are essential to the effective manager.They are skills
needed to function as a manager.
2. Clinical expertise- It is very difficult to help others develop their skills and evaluate
evaluate how well they have done so
without possessing clinical expertise oneself. It is probably not necessary (or even possible) to know everything
all other professionals on the team know, but it is important to be able to assess the effectiveness of their work
in terms of patient outcomes.
3. Great Communicator - Effective communication is one of t he most important tools for a leader or manager.
Information should be conveyed in a clear manner. Staff should be informed of expectations and upcoming
 changes (not reprimanded after they've unknowingly done it wrong), be given timely and accurate information
and updates, be listened to, and re ceive positive feedback, one of the most frequent complaints from nurses is
that their managers only talk to t hem when they are in trouble.
4. Flexible - The nurse manager m ust be able to adjust staffing or care decisions in response to changing needs
while also being decisive when necessary. Priorities can change quickly in a healthcare setting as patients
develop problems.
5. Self-motivation - An effective manager can’t motivate others if he or she can’t self -motivate. Self-motivation, the
ability to get yourself going, and take charge of what’s next for you, is a vital personal characteristic for a
manager. You have to keep yourself going — and motivate those who work with you.
6. Empathy - Be able to see the nurses who work for you as whole people, with lives and concerns outside of work,
and be able to see situations from their point of view. Emotionally attuned to the difficulties of patients and
family members on the floors you supervise, espec ially when called on to negotiate conflict with nurses or o ther
staffers.
7. Delegation – Part of being a good manager is learning to trust your te am enough to delegate work to t hem, as
well as knowing when and what to de legate.
8. Confidence – Managers are decision-makers. This means a manager needs to be able to make decisions with
confidence, lead with confidence and stand by his or her convictions. Any team would find difficulty working
with a manager who seems unpredictable and unsure o f himself, just as conversely teams as a whole become
more confident with a strong leader.
9. Reliable – As a person, you should be dependable and reliable. Your superiors, as well as your subordinates,
need to know that you can be counted on. Others in the organization should be able to r ely on you.
10. Effective decision-maker- The nursing staff expects the manager to make intelligent decisions when conflicts and
problems arise.
11. Respect –Be respectful of your workers if you are to have respect as a manager in return. Nurse managers should
be able to set the example and build relationships of respect.
12. Promote Staff Empowerment - The effective nurse manager is involved with the nursing staff on all levels,
welcomes their input, and works with them to ensure excellence, create autonomy, and increase job satisfaction
and opportunities for advancement.
13. Available and accessible to staff - Admittedly, meetings and other managerial responsibilities are important, but
the nursing staff needs to know that the manager is available when needed. Acknowledging and incorporating
staff suggestions, whenever possible, is also important to nurses.
14. Organisation - Being organised, in terms of projec ts, your staff, goals etc. is important for any manager. Without
organisationmanager will be unable to plan effectively, execute goals or measure you success/failure.
15. Mediator - Often, a good manager needs to be able to act as a mediator between workers, between a worker
and a client, or between a superior and a worker.

Leadership Theories

Trait Theory
It assumes that people inherit certain qualities and traits that make them better suited to leadership. Trait theories
often identify particular personality or behavioral characteristics shared by leaders. ‘Leaders are born, not made., which
means some people are natural leaders, and other s are not.

Great- Man Theory

According to this point of view, great leaders are simply born with the necessary internal characteristics such as
charisma, confidence, intelligence, and social skills that make them natural-born leaders.
Great man theories assume that the capacity for leadership is inherent  – that great leaders are born, not made. These
theories often portray great leaders as heroic, mythic and destined to rise to leadership when needed. I t suggests that
leadership cannot be developed. The term "Great Man" was used be cause, at the time, leadership was thought of
primarily as a male quality, especially in terms of military leadership.

Charismatic Theory
Charismatic Leader gathers followers through dint of personality and c harm, rather than any form of ex ternal power or
authority. They inspires others by obtaining emotional commitment from followers and by arousing strong feelings of
loyalty and enthusiasm.

Contingency Theories
Contingency theories of leadership focus on particular variables related to the environment that might determine which
particular style of leadership is best suited for t he situation. According to this theory, no leadership style is best in all
situations. Success depends upon a number of variables, including the leadership style, qualities of the followers and
aspects of the situation.

 Path Goal Theory

Leaders encourage and support their followers in achieving the goals they have been set by m aking the path
that they should take clear and easy and rewarding followers for completing their tasks

4 Leadership Styles:
1. Supportive leadership
Considering the needs of the follower, showing concern for their welfare and creating a friendly working
environment. This includes increasing the follower's self-esteem and making the job more interesting.
This approach is best when the work is stressful, boring or hazardous.

2. Directive leadership
Telling followers what needs to be done and giving appropriate guidance a long the way. This includes
giving them schedules of specific work to be done at specific times. Rewards may also be increased as
needed and role ambiguity decreased (by telling them what t hey should be doing).

This may be used when the task is unstructured and complex and the follower is inexperienced. This
increases the follower's sense of security and co ntrol and hence is appropriate to the situation.

3. Directive leadership Participative leadership

Consulting with followers and taking their ideas into account when making decisions and taking
particular actions. This approach is best when the followers are e xpert and their advice is both needed
and they expect to be able to give it.

4. Achievement-oriented leadership
Setting challenging goals, both in work and in self-improvement (and often toge ther). High standards are
demonstrated and expected. The leader shows faith in the capabilities of the follower to succeed. This
approach is best when the task is complex.

Situational Theories
Situational theories propose that leaders choose the best course of action based upon situational variables. Different
styles of leadership may be more appropriate for certain types of decision-making. For example, in a situation where the
leader is the most knowledgeable and experienced member of a group, an authoritarian style might be most
appropriate. In other instances where group members ar e skilled experts, a democratic style would be more effective.

Behavioral Theories
Behavioral theories of leadership are based upon the belief that great leaders are made, not born. Consider it the flip-
side of the Great Man theories. Rooted in behaviorism, this leadership theory focuses on the actions of leaders not on
mental qualities or internal states. According to this theory, peop le can learn to become leaders through teaching and
observation.

Lewin’s Leadership styles

 Autocratic
In the autocratic style, the leader takes decisions without consulting with others. The decision is made without
any form of consultation. In Lewin's experiments, he found that this caused the most level of discontent.
An autocratic style works when there is no need for input on the decision, where the decision would not change
as a result of input, and where the motivation of people to carry out subse quent actions would not be affected
whether they were or were not involved in the decision-making.

 Democratic
In the democratic style, the leader involves the people in the decision-making, although the process for the final
decision may vary from the leader having the final say to them facilitating consensus in the group.
Democratic decision-making is usually appreciated by the people, especially if they have been used to autocratic
decisions with which they disagreed. It can be problematic when there are a wide range of opinions and there is
no clear way of reaching an equitable final decision.

 Laissez-Faire
The laissez-faire style is to minimize the leader's involvement in decision-making, and hence allowing people to
make their own decisions, although they may still be responsible for the outcome.
Laissez-faire works best when people are c apable and motivated in making their own decisions, and where there
is no requirement for a central coordination, for example in sharing resources across a r ange of different people
and groups.

Participative/ Interactional Theories

Participative leadership theories suggest that the ideal leadership style is o ne that takes the input of others into account.
These leaders encourage participation and contributions from group members and help group members feel more
relevant and committed to the decision-making process. In participative t heories, however, the leader retains the right
to allow the input of others.

Management Theories
Also known as transactional theories, focus on the role of supervision, organization and group performance. These
theories base leadership on a system of rew ards and punishments. Managerial theories are often used in business; when
employees are successful, they are rewarde d; when they fail, they are reprimanded or punished. Learn more about
theories of transactional leadership.

 Scientific Management Theory

Frederick Winslow Taylor—(1856-1915) was the father of Scientific Management. When he was working as an
apprentice at the Midvale steel company, he noticed that most workers did not work as hard as they could. To
increase efficiency, Taylor tried to figure out the “one best way” to perform a particular task. To do so, he used
a stop watch to determine which method was the most efficient. These studies were known as “Time and
Motion Studies.”
 Taylor’s scientific management was based on four main ideas:
1. Jobs should be designed according to scientific rules rather than rule-of-thumb methods. Employers should
gather, classify, and tabulate data in order to determine the “one best way” of performing a task or series of
tasks.
2. Employees should be selected and trained according to scientific methods. Employers should also train
employees in order to improve their performance.
3. The principles of scientific management should be explained to workers.
4. Management and workers should be interdependent so that they cooperate

 Administrative Management Theory

Henri Fayol (1841 –1925) is often described as the ‘father’ of modern management. He had been managing
director of a large French mining company, and was concerned with efficiency at an organisational level rather
than at the level of the task. Drawing on his experience of what worke d well in an organisation, he developed a
general theory of business administration.

He first broke management down into five distinct elements:

 forecasting and planning  – looking into the future and drawing up action plans
 organising – building up the material and human structure of the undertaking
 commanding – maintaining activity amount personnel
 coordinating – unifying and harmonising activity and effort
 controlling – ensuring that things conform to rules and instructions

14 Principles of Management
1. Division of work  – specialisation encourages continuous improvement, both in terms of skill and methods.
2. Authority – the right to give orders and the power to require obedience.
3. Discipline – a successful organisation requires the shared effort of all staff. Employees must obey, but this is
two-sided – they will only comply if management play their part by providing good leadership.
4. Unit of command – employees should have only one boss with no other c onflicting lines of command.
5. Unity of direction – the entire organisation should be aligned and be moving towards a common goal.
6. Subordination of individual interests  – individual needs and interests should be subordinate to the needs of the
organisation.
7. Remuneration – payment is an important motivator, but should be fair and reward well-directed effort.
8. Centralisation – an element of centralisation must always be present and is part of the ‘natural order’ in an
organisation.
9. Line of authority – a hierarchy is necessary for unity of direction.
10. Order – an organisation’s requirements must be balanced against its resources.
11. Equity – employees must be treated equally and fairly.
12. Stability of tenure of personnel  –employees need a period of stability in a job to perform at their best.
13. Initiative – encouraging staff to show initiative is a source of strength in an organisation.
14. Esprit de corps – management should foster harmony, cohesion and morale among the organisation’s staff.

 Bureaucratic Theory
Max Weber a German sociologist propounded the t heory called principle of bureaucracy – a theory related to
th
authority structure and relations in the 19  century and concerned with describing the ideal structure of an
organization.

According to him, bureaucracy is the formal system of organization and administration designed to ensure
efficiency and effectiveness. He suggested an ideal model for management as bureaucratic approach. He, in the
book the theory of social and economic or ganizations, explained the basic principles of bureaucracy. He gave
emphasis on division of labor, hierarchy, detailed rules and im personal relations.
 Principles of bureaucratic theory
1) Job specialization: - Jobs are divided into simple, routine and fixed c ategory based on competence and
functional specialization.
2) Authority hierarchy: - Officers are organized in a n hierarchy in which higher officer controls lower
position holders i.e. superior controls subordinates and their performance of subordinates and lower staff could
be controlled.
3) Formal selection: - All organizational members are to be selected on the basis of technical qualifications
and competence demonstrated by training, education or formal examination.
4) Formal rules and regulations : - To ensure uniformity and to regulate actions of employees, managers
must depend heavily upon formal organizational rules and regulations. Thus, rules of law lead to impersonality
in interpersonal relations.
5) Impersonality: - Rules and controls are applied uniformly, avoiding involvement with personalities and
preferences of employees. Nepotism and favoritism are not prefe rred.
6) Career orientation: - Career building opportunity is offered highly. Life long employment and adequate
protection of individuals against arbitrary dismissal is guaranteed. Here managers are professional officials rather
than owners units they manage. They work for a fixed salaries and pursue their career within the organization.

 Hawthorne Study
Study of worker efficiency at the Hawthorne Works of the Western Electric Co. during 1924-1932. Worker’s
productivity was measured at various levels of light illumination. Researchers found that reg ardless of whether
the light levels were raised or lowered, productivity rose.

The researchers concluded that productivity rose because workers worked harder when they received
attention. This phenomenon, in which change of any kind increases productivity, has been known as the
“Hawthorne Effect.”

 McGregor’s Theory X and Y

By Douglas McGregor. This theory refers to the perception of manager has of his employees.

Theory X states that a manager sees his employees as fundamentally lazy, and that they always are on the lookout
to escape work. This belief makes managers t o micromanage their employees, and results in mistrust and rest rictive
supervision. Theory X manager tends to blame others for everything.

Theory Y type of manager believes that every employee is self-motivated and can be trusted. And that they can
think for themselves, accept responsibility, and, given right environment they can per form well. This type of thinking
builds positive work environment. There will be open communication, lesser hierarchy and collaborative decision
making in such an environment.

 Theory Z
William Ouchi, a management researcher developed this new theory of management in the 1980s
Theory Z is a business management theory that integrates Japanese and American business practices. The
Japanese business emphasis is on collective decision making, whereas the American em phasis is on individual
responsibility.

Theory Z Type of Organization

1. Long-term employment
2. Consentual, participative decision-making
3. Individual responsibility
4. Slow evaluation and promotion
 5. Implicit, informal control with explicit, formalized measures
6. Moderately specialized career path
7. Holistic concern, including family

Relationship Theories
Also known as transformational theories, focus upon the connections formed between leaders and followers.
Transformational leaders motivate and inspire people by helping group members see the importance and higher good of
the task. These leaders are focused o n the performance of group members, but also wa nt each person to fulfill his or her
potential. Leaders with this style often have high ethical and mor al standards.

Motivation Theories
Motivation is a psychological feature that makes a living being strive towards achieving a goal, and controls its behavior
in this respect.

2 THEORIES OF MOTIVATION
1. Content theories – (needs theories) explain the specific factors that motivate people. The content approach
focuses on the assumption that individuals are motivated by the desire to satisfy their needs. Content theories
help managers understand what arouses, energizes, or initiates employee behavior.

2. Process theories – (cognitive theories) focus on the cognitive processes underlying and individual’s level of
motivation. This approach provides a description and analysis of how behavior is energized, directed, sustained,
and stopped. Process theories

CONTENT THEORIES
Maslow’s Hierarchy of Needs
Abraham Maslow is considered the father of humanistic psychology. Maslow concluded that human behavior is
not controlled only by internal or external factors but both and that some factors have prece dence over others.
1. Physiological - need for air, water and food
2. Safety/Security  –  home in a safe neighborhood, job security, retirement plan and health or medical
insurance
3. Love and Belonging – desire to be loved, to belong and to be approved by others
4. Self-esteem  – external esteem is satisfied by achieving the respect of others, social and professional status,
recognition and appreciation, while internal esteem  involves the need for self-respect, a feeling of
confidence, achievement, and autonomy.
5. Self-actualization  –  the desire to become more of what we are, and to become everything that one is
capable of becoming.
*Individuals must satisfy their lower level needs, at least to and acceptable state, before they can be motivated to
achieve higher levels in the hierarchy. Only one in ten individuals becomes fully self-actualized.

Alderfer’s ERG Theory

Clayton Alderfer introduced an alternative needs hierarchy that relates to three identified categories of needs;
existence, relatedness and growth.
.
1. Existence  – refers to and individual’s concern with basic material and physiological existence requirements,
such as food, water, pay, fringe bene fits, and working conditions.
2. Relatedness  – refers to the need for developing and sustaining interpersonal relationships such as relations
with family, friends, supervisors, co-workers, subordinates, and other significant groups.
3. Growth  – refers to an individual’s intrinsic need to be creative, and to make useful and productive
contributions, including personal development with opportunities for personal growth.

Difference between Maslow and Alderfer

 1. ERG theory does not require an individual to satisfy a lower level need for a higher level need to become the
driver of the person’s behavior. Although the ERG t heory retains the concept need o f hierarchy, it does not
require a strict ordering as compared to Maslows.
2. ERG theory accounts for differences in need preferences between cultures; therefore, the order of needs
can be different for different people.
3. The most important aspect of the ERG theory is the frustration-regression principle. The frustration-
regression principle explains that when a barrier prevents an individual from obtaining a higher level need, a
person may “regress” to a lower level need (or vice versa) to achieve satisfaction.

Herzber’s Two-Factor Theory

Developed by Frederick Herzberg, also known as Motivation-Hygiene Theory. It states that the content of a person’s job
is the primary source of motivation. This opposes the popular belief that money alone is the primary motivation for
people to work.

Hygiene factors such as pay, job security, wor king conditions, fringe benefits, and job-policies will only reduce
dissatisfaction, and by themselves do not motivate people. Other factors such as levels of challenge, work, recognition,
advancement, autonomy and opportunity for creativity are termed as motivational factors that make people want to
work.

McClelland’s Need Theory

By David McClellan, proposed that people are motivated by achievements, affiliation and power.

People who are motivated by achievements prefer to master a job or situation, prefer to work on task that are
moderately difficult, and prefer work where success is based on effort (and notf actor of luck), and that they would like
to get feedback on their work.

People who are motivated by affiliation prefer to work with people in power and love to e stablish relationship with
them, be part of such elite group where their work is accepted and respected.

People who are motivated by power prefer to work in positions of power (military, police and heads of departments)
and they intrinsically want to influence, teach and encourage people. They place high value on discipline. They have
zero-sum goals where for one to win, someone else has to lose.

PROCESS THEORIES
Expectancy Theory
By Victor Vroom. This is based on the assumption that people choose a specific behavior based on their expectation of
the intended result.
Theory Formula: M=V x I x E
He introduced three variables :Expectancy (E) : Expectation leads to desired Performance
Instrumentality, (I) : Performance leads to favorable Outcome (rewar ds such as promotion, salary increase), and Valence
(V) : This is the importance one places on rewards, based on their needs, goals and sources of motivation

Equity Theory
By J. Stacy Adams.States that a person evaluates his/her outcomes and inputs by comparing them with those of others.

2 MAJOR COMPONENTS IN EQUITY THEORY

1. Inputs – those things a person contributes to an ex change. In the workplace, an employee’s inputs
would be experience, education, efforts, skills and abilities.
2. Outcomes – things that result from exchange, such as salary, bonuses, promotions, recognition, etc.
 Equity theory looks at an individual’s perceived fairness of an empl oyment situation and finds that perceived
inequalities can lead to changes in behavior. When individuals believe that they have been treated unfailry in
comparison with their coworkers, they will re act in one of four ways:
1. Changing their work inputs to better match the rewards they are receiving.
2. Ask for a raise or take legal action.
3. Change their own perception of t he situation.
4. Quit.

Satisfaction-Performance Theory
 Lyman Porter and Edward Lawler (1968) extended the Expectancy Theory and incorporated the Equity
Theory into a model to reflect the relationship of an employee’s performance to job satisfaction. Job
satisfaction is related to both absenteeism and turnover. Turnover and Absenteeism have a direct
influence on an entity’s effectiveness. The resear chers believe that performance leads to satisfaction
rather than satisfaction to improved performance.
 Porter and Lawler stated that job satisfaction is generated when an employee re ceives rewards for his or
her performance. These rewards can be intrinsic (sense of accomplishment) or extrinsic (promotion or
bonus).  The amount of reward an employee receives may be unrelated to how well he or she has
performed.
 The Satisfaction-Performance Model tells us two things. First, if an individual is attracted by the value of
reward and he or she perceives that a higher degree of effort on his or her part will lead to those
rewards and the employee has the necessary abilities and accurate role perceptions, then higher
performance will result. Second, if the intrinsic and extrinsic rewards an employee receives for higher
performance are perceived as equitable, then satisfaction will result  – satisfaction being the difference
between perceived equity and actual rewards.

Goal Setting Theory

Edwin Locke which proposed that motivation and performance will be high if individuals are set specific goals w hich are
challenging, but accepted, and where feedback is given on performance .
The two most important findings of this theory are:
1. Setting specific goals (e.g. I want to earn a million before I am 30) generates higher levels of performance than
setting general goals (e.g. I want to earn a lot of money).
2. The goals that are hard to achieve  are linearly and positively connected to performance. The harder the goal,
the more a person will work to reach it.

Reinforcement Theory
B.F. Skinner experimented with the theories of operant conditioning. Skinner’s research found that an individual’s
behavior could be directed through the use of reinforcement. Reinforcement theory suggests that an employee’s
behavior will be repeated if it is associated with negative consequences. Reinforcement is a behavioristic approach,
which argues that reinforcement conditions behavior.

4 TYPES OF REINFORCEMENT
1. Positive reinforcement – when a desirable outcome is associated with a behavior. Desirable outcomes
can be simple and symbolic, such as words of praise, a certificate of accomplishment, or a month’s use
of the parking space directly outside the hospital’s main entrance.
2. Negative reinforcement  –  when an unpleasant effect is eliminated or avoided, which, like positive
reinforcement, encourages repeated positive behavior.
3. Punishment  –  can come in two forms: negative consequences and positive consequences, both
undesirable. A negative consequence is an undesirable response to an employee’s behavior in the
attempt to stop the behavior from being r epeated.
4. Extinction  –  defined as the removal of an established reinforcement that was previously used to
reinforce an employee’s behavior. This removal may weaken an employee’s future behavior.

Attribution Theory
Heider (1958) was the first to propose a psychological theory of attribution, but Weiner and colleagues (e.g., Jones et al,
1972; Weiner, 1974, 1986) developed a theoretical framework that has become a major research paradigm of social
psychology. Heider discussed what he called “naïve” or “commonsense” psychology. In his view, people were like
amateur scientists, trying to understand other people’s behavior by piecing together information until they arrived at a
reasonable explanation or cause.

Attribution theory is concerned with how individuals interpret events and how this relates to their thinking and
behavior. Attribution theory assumes that people try to determine why people do what they do. A person seeking to
understand why another person did something may attribute one or more causes to that behavior. According to Heider
a person can make two attributions 1) internal attribution, the inference that a person is behaving in a certain way
because of something about the person, such as attitude, character or personality. 2) external attr ibution, the inference
that a person is behaving a certain way because of something about the situation he or she is in.

http://changingminds.org/disciplines/leadership/leadership.htm

LEADERSHIP AND MANAGEMENT THEORIES APPLICABLEINNURING PRACTICE

Servant Leadership Theory

The leader takes care of the needs of his followers first before they take care of their own. Instead of acting like a king to
their subordinates, leaders act as servants. The le ader feels that they need to serve their followers rather than force
upon them what they want.

The servant leader deviates from the traditional leadership style of dominating subordinates and telling them what to
do, and rather empowers subordinates and inspires them to perform. The servant leadership acts proactively to set the
way, and inspire the subordinates to follow. Such inspiration leads to collective efforts, the results of which turn out to
be more than the sum of individual efforts.

Ten characteristics of servant leader are listening, empathy, healing, awareness, persuasion, conceptualization,
foresight, stewardship, commitment to the growth of others, and building community.

Principal Agent Theory

This is the problem of designing mechanisms that will induce agents to act in their principals' interests. In general, unless
there is costly monitoring of agents' behaviour, the problem cannot be completely solved. Hired managers (like hired
gardeners) will generally wish to pursue their own goals. They cannot ignore profits, however, because if they perform
badly enough they will lose their jobs. Just how much latitude they have to pursue their own goals at the expense of
profits depends on many things, including the degree of competition in the industry and the possibility of takeover by
more profit-oriented management.

The principal-agent problem arises within the firm when ownership and control are separated and the self-interest of
managers may lead them to act other than in the interest of the shareholders. The problem is to design monitoring or
incentive systems that will make managers act in the best interest of the shareholders.

Solutions to the principal-agent problem the way in which agents can be encouraged to act in the interest of principals is
by the introduction of incentives to align the goals of the two.

>The first way to align the interests of shareholders and managers is to ensure that managers themselves have an
interest in the value of the shares. This can be done either by ensuring that managers buy (or are perhaps given) some
shares or by giving them share options which will create wealth for the managers when the value of the firms' shares
rises above some value.
>A second way to give managers a shared interest in profit is by tying some part of their remuneration directly to the
firm's profits.This could be an annual bonus that is linked to the previous year's profit of the company as a whole, or it
could be some explicit share of the profit of the part of the company in which that manager works.

>A third way of achieving the same goal is to make promotion subject to the profits of the company as a whole or to the
section in which the person is employed. Those who succeed in increasing profits in their divisions thus will get on well,
and those who fail to do so may be let go.

Human and Social Theory

 Individuals are involved in the work.

 There is a team orientation.

 Individuals are mentored.

 There is a commitment.

 Consideration is given to morale.

 There is a focus on participation, cohesion, and consensus building.

 Human represents the capability of individual

 Social represents what the group can accomplish together

Authentic Leadership Theory

Focuses on whether leadership is genuine and on the formation of authentic relationships between the leader and
followers that are characterized by trust and integrity

Five characteristics of Authentic Leaders

1. Understand their purpose
2. Strong values
3. Trusting relationships
4. Self-discipline
5. Act from the heart (mission)

FOUR COMPONENTS:
1.SELF-AWARENESS
Reflecting on one’s core values, identity, emotions, motives
Being aware of and trusting your ow n feelings

2. INTERNALIZED MORAL PERSPECTIVE

Self-regulatory process using internal moral standards to guide behavior

3.BALANCED PROCESSING
Ability to analyze informational objectively and explore other people’s opinions before making a decision

4. RELATIONAL TRANSPARENCY
Being open and honest in presenting one’s true self to others.

Five characteristics “the five marks of authentic leadership”:

1. Authentic leaders have insight. Sometimes we refer to this as vision, but that usually has exclusive reference to
the future. While leaders must have vision, they need more. They need wisdom and discernment.

2. Authentic leaders demonstrate initiative. They go first. They don’t sit on the sidelines. They don’t ask others to
do what they are unwilling to do themselves. Instead, they lead by example

3. Authentic leaders exert influence. It’s no coincidence that influence and influenza (the flu) come from the same
root word. Real leaders are contagious.
 4. Authentic leaders have impact. At the end of the day, leaders make a difference. The world is changed because
of their leadership. They are able to create real and lasting change. Unless something has shifted, they aren’t
leaders. They are only entertainers. There is a big difference. The measure of leadership cannot be found in the
leader; it is found in the impact the leader has on his or her followers.

5. .Authentic leaders exercise integrity. Not every leader is benevolent. Adolf Hitler was a leader, as was Mao
Zedong and Josef Stalin. They had insight, initiative, influence, and impact. Yet their lives were not integrated
with the highest values. Integrity—or the lack thereof —ultimately determines the quality of a person’s impact.
In a sense, this is the foundation of authentic leadership.

Leaders must be deliberate and intentional if they are to be successful. These five qualities can guide us as we grow in
our ability to lead.

Thought-Leadership Theory
>Thought leadership is based on youthful rebelliousness - the w illingness to risk group rejection in t he pursuit of a better
way of doing things. Hence, thought leadership is not a learned skill.
>It simply means advocating a better idea to your colleagues or boss.
>It demonstrates what needs to be done, leaving others to follow without helping them get ther e.
>Thought leadership is radically different from traditional top-down leadership. It has nothing to do with position or
managing people.
>It is the basis of innovative change and is e galitarian because it can shift rapidly from one person to another.
>leadership is about the initiation of new directions. Implementing them is a managerial undertaking.

Quantom Leadership Theory

According to Dr. Tom Porter-O'Grady, quantum leadership helps nurses make better decisions, such as when is
the most appropriate time to call in a physician. The training helps the nurses weigh the pros and cons of different plans
and interventions of care. This leadership theory places an emphasis on self-direction rather than on being given
direction by others.

>It recognizes the complexity and multidimensionality of the conditions can result in major divergence in direction. This
makes it next to impossible to predict what will happen, as systems and changes are non -linear.
>Leaders therefore need to have creativity and flexibility.
>They need to create connective relationships with people within the system that nurture and support all involved.

COMPONENTS OF EFFECTIVE LEADERSHIP/MANAGEMENT

1. They appreciate who they are.
2. They posses a positive attitude.
3. They believe in themselves.
4. Change is their way of life.
5. They plan ahead.
6. They build relationships with quality people.
7. They are optimists.
8. They do not take issues personally.
9. They build the people they lead.
10. They love and respect the people t hey lead.

Leader vs Manager
Leader Manager
Emphasize the future Focus on the present
Emphasize setting direction for “what will be?” Deal with “what is”
Give vision and inspiration Execute control
Lead people Manage things/ resources
Emphasize hierarchy, diffused authority Emphasize hierarchy, chain of command